Insurance Australia Group (IAG)

Insurance Australia Group
is poised to announce what direction its loss-making UK arm will take. Earlier this year, IAG placed its British operations under review. Chief executive Mike Wilkins had outlined three possible outcomes of the review: a sale, focusing more on motor insurance and improving existing operations. IAG has confirmed it was in discussions with potential acquirers but cautioned there was no assurance anything would come out of the talks. The UK division suffered a $13 million loss for the year to June 30. The business has been plagued by weak economic conditions and ongoing bodily injury claim inflation. It is also facing pressures from competitors. IAG reported a $297 million write-off on the value of its UK arm. Despite the division’s troubles, IAG has been one of the better performing stocks in the market this calendar year. Its share price has risen from about $3.14 in December 2011 to close at $4.80 on Tuesday.